US Gains $100M Settlement With Owner, Operator of Ship That Wrecked Key Bridge
The Singaporean corporations that owned and operated the cargo ship Dali have agreed to pay $101,980,000 to resolve a civil claim brought by the United States for costs related to the response to the catastrophic collapse of Baltimore’s Francis Scott Key Bridge in March.
The U.S. Department of Justice said the settlement with Dali owner Grace Ocean Private Ltd. and operator Synergy Marine Private Ltd. resolves U.S. claims for civil damages under the Rivers and Harbors Act, Oil Pollution Act, and general maritime law.
The settlement, coming seven months after the incident, “fully compensates” the U.S. for its costs of the response to the tragedy, and also avoids the expense of litigating this complex case for potentially years, according to DOJ. The funds will go to the U.S. Treasury and to the budgets of several federal agencies directly affected by the collision and bridge collapse or involved in the response.
In the early morning hours of March 26, the Dali left the Port of Baltimore bound for Sri Lanka. While navigating through the Fort McHenry Channel, the vessel lost power, regained power, and then lost power again before striking the bridge. The bridge collapsed and plunged into the water below, killing six people.
In addition to the loss of life, the wreck of the Dali and the remains of the bridge were left to obstruct the navigable channel, bringing all shipping into and out of the Port of Baltimore to a standstill. The loss of the bridge also severed a critical highway in the transportation infrastructure and blocked a key artery for local commuters
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“This resolution ensures that the costs of the federal government’s cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy and not the American taxpayer,” said Benjamin C. Mizer, deputy associate attorney general with DOJ.
The response required the efforts of dozens of federal, state, and local agencies to remove about 50,000 tons of steel, concrete, and asphalt from the channel and from the Dali itself. While removal operations were underway, the U.S. set up temporary channels to start relieving the bottleneck at the port and mitigate some of the economic devastation caused by the Dali. The Fort McHenry Channel was cleared by June 10, and the Port of Baltimore was once again open for commercial navigation.
On September 18, DOJ filed its civil lawsuit in the U.S. District Court for the District of Maryland, seeking more than $100 million in damages from Grace Ocean and Synergy.
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DOJ’s claim followed the filling of a legal action by the vessel companies in which they are seeking exoneration or limitation of their liability, They have claimed that the collapse of the bridge was “not due to any fault, neglect, or want of care” on their part and thus under maritime law they should not be held liable for any loss or damage or no more than $43.7 million at the most.
The U.S. civil suit challenged that position, alleging the owner and operator “sent an ill-prepared crew on an abjectly unseaworthy vessel to navigate the United States’ waterways.”
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“They did so to reap the benefit of conducting business in American ports,” according to the lawsuit claimed. “Yet they cut corners in ways that risked lives and infrastructure. Those responsible for the vessel must be held fully accountable for the catastrophic harm they caused, and punitive damages should be imposed to deter such misconduct.”
The state of Maryland is also challenging the Dali companies’ claim of limited liability. The state’s lawsuit is seeking to cover the cost to rebuild the bridge, which it has said will be about $1.9 billion, as well as cleanup and other costs.
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The DOJ settlement does not include any damages for the reconstruction of the Key Bridge.
The families of six workers killed in the tragedy, the city of Baltimore, small businesses and others have also filed suits against the owner and operator.
Photo: Crane involved in salvage operation after Baltimore Key Bridge collapse.